Universitas Sebelas Maret Surakarta

Email: dwiprasetyani_fe@staff.uns.ac.id

The economy is considered an efficient way to materialize, but the relationship between CO2 emissions and economic growth has not been systematically explained. We will build a model that formalizes the interaction between CO2 emissions and GDP per Capita, FDI, Forest Area and Government Spending on Education used to revisit the trade-off between economic growth and the environment or a green economy. The model captures an essential feature of the continuous innovation process, which is path dependencies. First, this research will create a data analysis using the System GMM Estimation. Second, we will evaluate GDP per Capita, FDI, Forest Area and Government Spending on Education spending on green growth. The results of this study are expected to be a government policy to increase green economic growth. Keywords: Public spending, green economics, System GMM